The National Pharmaceutical Pricing Authority (NPPA) that analyzed the trade margins of the commonly used syringes and needles, has found the maximum retail prices (MRP) inflated in certain cases by as much as over 1000 percent over the ex-factory or price to distributor (PTD).
The drug price regulator which has sought data of syringe and needles from various manufacturers including the domestic and foreign companies published its report on Tuesday
Depending on the type of syringe, MRPs are marked up on average between 214 percent and 664 percent. The MRP on needles ranged from 57 percent to 356 percent.
The average mark ups were around 480 percent over PTD for commonly used hypodermic disposable syringes.
The maximum trade margin was as high as 1251 percent or 12 times the cost of PTD when it came to 5 ml specification of hypodermic disposable syringes with needle.
The findings come after NPPA earlier found similar studies pointing towards wide variance between ex-factory or landed prices of consumables and medical devices to the MRP or the price to the patient indicating a possible collusion between manufacturers, distributors and hospitals to distort prices.
Rajiv Nath, President of under Association of Syringes and Needles Manufacturers (AiSNMA) acknowledges high trade margins.
“We have studied the trade margin report on syringes and needles by NPPA, and acknowledge the very high trade margins in this product range motivated by an unhealthy race to defend or attain hospital and retailer customers with luring them with higher trade margins than competing brands,” Rajiv Nath said.
A few months ago the 16 domestic syringe and needle makers under Association of Syringes and Needles Manufacturers (AiSNMA) have decided to voluntarily bring down prices of their products by curbing the trade margins to 75 percent in a bid to avoid price caps by the drug pricing regulator.
However at least two manufacturers have since dropped from the arrangement, while some others are not happy fearing loss of hospital accounts.
The major multinational manufacturers BD and B Braun stayed away from such arrangement.
The Medical Technology Association of India (MTaI), which represents MNC companies said it does not support self-regulation of syringe prices as proposed by All India Syringes and Needles Manufacturers Association (AISNMA) as it is not a viable solution for enabling patient access to advance medical technology products.
“In the absence of government’s directive, any self-regulation will not be industry wide and would bring new tilts and distortions”, MTaI said.
The All India Drugs Action network (AIDAN), a group of healthcare-focused NGOs, has expressed concern over the inflated prices of commonly used devices syringes and needles and asked the government to impose price controls.
“The data are showing that in yet another instance of inflated pricing, the MRPs bear no relation to the costs of manufacturing. These trade margins show how companies have artificially raised the MRPs at the behest of hospitals,” said AIDAN in a statement